ECB Board Member Supports Climate Consideration in Bond Buying

Jens Weidmann President of the Deutsche Bundesbank, Member of the Governing Council of the European Central Bank (ECB) said on Wednesday that ECB might be moving towards reducing its bond purchases from polluting companies, within the massive stimulus program.

The move signals a change in Weidmann’s position regarding an active role, as promoted by ECB President Christine Lagarde, in tackling climate risks.

A change in policy could take place as the ECB wraps up its strategic review by the end of the summer, Reuters reported.

“Even if we decided to limit the maturities or the amount of corporate bonds as described, we would still need an appropriate and transparent yardstick for climate-related financial risks.”